Stronger external buffers, along with narrower current account deficits and solid foreign direct investment, could reduce Costa Rica's exposure to possible balance-of-payments risks. As Costa Rica consolidates as a regional hub for high-end manufacturing and services, nearshoring and friendshoring could boost long-term economic growth. Constraints on timely access to external financing still weigh on the rating. We revised our rating outlook on Costa Rica to positive from stable and affirmed our 'BB-' long-term foreign and local currency sovereign credit ratings. The transfer and convertibility assessment is unchanged at 'BB+'. On Oct. 22, 2024, S&P Global Ratings revised its outlook on the long-term ratings on Costa Rica to positive from stable. At the same time, we affirmed our 'BB-' long-term and
